New Laws Regarding Loans – Modifications in Condition of Application

Loans play a vital role in buying a car, purchasing house and paying education fee etc. Recently some amendments have been done in policies, let’s find out what new laws regarding loans have been formed and changes in condition in the next section of this article.

  • The United States has recently introduced a new law for student loan which will come in effect from January 2014. According to this law, students who will enroll for education can pay only 10% of their income for repayment. Banks offering loans to students will forgive their remaining payments after 20 years if they pay their EMI regularly. Thirdly, all these will be direct loans without subsidies which are given to banks. These steps are taken to provide benefits to Americans to want get higher education at affordable price.
  • Reserve bank of India has made certain amendments in its credit policy by decreasing the home loan rates for new borrowers.
  • State bank of India has changed its qualification criteria for car loan, only those customers who have income of Rs. 6 lakh per annum are eligible. It presently charge 10.45% .
  • State bank of India has changed its terms and conditions for education loan. For overseas education the limit is Rs. 30 lakhs which must be returned within 5-7 years time period and for getting education in India student can take up to Rs. 10 lakhs and must return within 5-7 years. The payment process will start after 1 year of course completion. Female students will get a rebate of 0.5% on the interest rate. Apart from that, there will be procession cost of Rs. 5000 for abroad education; while there will be no processing charge for studies in India.

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